EagleBank Provides $48MM in Acquisition Financing to Montgomery County Housing Opportunities Commission
Funding will finance three multifamily properties located in Bethesda, MD
BETHESDA, Md., June 09, 2022 (GLOBE NEWSWIRE) — EagleBank, one of the largest community banks in the Washington, D.C. area, today announced it provided $48,450,000 in acquisition financing to Montgomery County Housing Opportunities Commission (“HOC”) for three multifamily properties located in the Woodmont Triangle area of downtown Bethesda. The project is sponsored by Montgomery County HOC.
The three properties combined have 212 apartment units situated across a site area of 4.28 acres. All 212 units are naturally occurring affordable housing with no legal or regulatory restrictions on rents or household incomes. As naturally occurring affordable housing located in the Bethesda CBD, the Properties were at very high risk for significant future rent increases and potential displacement upon redevelopment. Control of the Properties is essential to preserving the existing housing stock and managing redevelopment in the future to avoid any permanent low- and moderate-income tenant displacement. This acquisition presents a unique opportunity for HOC to preserve currently naturally affordable residential units as well as significantly increase the number of affordable units in the area with a very high redevelopment future rent increase potential.
Currently all unit rents are at or below 70% of the Washington, DC-MD-VA Metropolitan Statistical Area Median Income (“AMI”) levels. HOC intends to implement two levels of affordability across the Properties: 10% of the units (21 units) will be formally restricted to households earning 70% or less of the area AMI. Additionally, 20% of the units (44 units) will be restricted to households earning 50% or less of the area AMI. Implementation of the restrictions will be phased in over the period of 2-3 years and will not displace any existing residents.
Established in 1974, HOC’s goal is to promote housing affordability in Montgomery County and has a long, successful, history with similar multifamily projects. Currently, the Montgomery County HOC owns and operates 22 other nearby properties with 7,000 units.
“EagleBank’s lending team is committed to expanding access to affordable housing in our community,” said Ryan Riel, Chief Real Estate Lending Officer at EagleBank. “We are pleased to expand our relationship with HOC and partner with them to achieve a community-focused approach to housing.”
The transaction was facilitated by members of EagleBank’s experienced commercial real estate team, senior relationship manager Andrea Berkeley and portfolio manager Sean Krysick.
The three properties are all located along Battery Lane in the downtown Bethesda, Woodmont Triangle neighborhood. The surrounding area consists of a mixture of medium-to-high density commercial and residential development. In addition, the Bethesda Metro Station is nearby.
About Montgomery County Housing Opportunities Commission (“HOC”)
The mission of the Housing Opportunities Commission is to provide affordable housing and supportive housing services that enhance the lives of low- and moderate-income families and individuals throughout Montgomery County, Maryland so that:
- No one in Montgomery County lives in substandard housing;
- We strengthen families and communities as good neighbors;
- We establish an efficient and productive environment that fosters trust, open communication and mutual respect; and
- We work with advocates, providers and community members to maintain support for all the work of the Commission.
To accomplish these goals, HOC acts as an owner, operator, and vertically-integrated developer, focusing on three things: getting people housed, keeping people housed, and helping customers reach their fullest potential. HOC provides affordable housing resources to nearly 15,000 Montgomery County residents, owns more than 8,000 rental units, and provides assistance to more than 7,000 low-income households – many of whom are elderly and persons with disabilities – through the Housing Choice Voucher program.
Eagle Bancorp, Inc. and EagleBank
Eagle Bancorp, Inc. is the holding company for EagleBank, which commenced operations in 1998. EagleBank is headquartered in Bethesda, Maryland, and conducts full service commercial banking through 20 offices, located in Suburban, Maryland, Washington, D.C. and Northern Virginia. EagleBank focuses on building relationships with businesses, professionals and individuals in its marketplace.
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